February 2024

Despite the stability of interest rates and a resurgence of activity in year-end markets, investments in Canada, including Quebec, continue to be impacted by economic and geopolitical uncertainty.


Réseau Capital and its Centre of Expertise presents the quarterly report on private equity industry activities in Québec. Produced in collaboration with the Canadian Venture Capital Association (CVCA), this report provides a detailed view of venture capital (VC) and private equity (PE) investments in Quebec for the F quarter of 2023. It provides a review of private investment activity in Quebec companies by type of investment, industry sector, stage and size of investment.


In Q4 2023, Québec saw nearly $ 994M invested across 104 deals in venture capital and private equity investments. From an annual perspective, 2023 concludes with investments totaling $5,4 billion across 480 deals in venture capital and private equity investments combined.

In 2023, the venture capital landscape in Quebec witnessed a significant overall decline in activity, marked by 136 deals for a total amount of $1.38B. Deal count decreased by over 17%, accompanied by a 50% reduction in invested amounts compared to 2022. Despite this slowdown, the CleanTech and Life sciences sectors emerged strong. Moreover, seed-stage activities experienced a notable increase, with deals rising by nearly 9%, and invested amounts showing a 1.6% uptick compared to 2022.

In relation to private equity, there was a notable decline of over 36% in deal count, accompanied by a 43% decrease in invested amounts compared to 2022. In 2023, there were 344 deals amounting to $3.97B in investments. Quebec, for the first time, slipped to the second position in the country concerning invested amounts, comprising 41% of the total investments in Canada, with Ontario taking the lead at 43%. Despite the overall downturn in private equity activities throughout 2023, the standout performer was the CleanTech sector, boasting a remarkable 100% surge in deals compared to 2022 and an extraordinary 657% increase in invested amounts. The year 2023 is characterized by small-scale investments, with 67% of deals being $5 million or less.

As observed in previous quarters, certain factors are likely to continue influencing transaction and investment dynamics in the upcoming months. The evolution of interest rates, market activity dynamics, and geopolitical tensions will play pivotal roles in shaping the progress of deals in 2024.


Venture Capital Highlights

  • In 2023, Quebec experiences a decline in funding rounds at the early and later stages, with a total of 31 deals totaling $677M for early-stage and 16 deals totaling $390M for the later-stage and growth-stages.
  • The seed-stage witnessed an increase of nearly 9% in deals and 1.6% in invested capital compared to 2022, totaling 74 deals amounting to $224M in 2023.
  • Clean technologies had a successful year in 2023, with 17 deals totaling $276M, representing a 41% increase in deal count and an 8% increase in invested capital compared to 2022.
  • In 2023, the Life sciences sector marks its third most significant year since 2013 in terms of deal count, with 42 deals totaling $371M.


Private Equity Highlights

  • In 2023, Quebec registered $3.97B in capital investment across 344 deals. This follows the unprecedented transaction volumes recorded in 2021 and 2022, confirming a return to pre-pandemic levels (Q3-2020).
  • Quebec experienced a shift, ceding its top position in invested amounts to Ontario for the first time. Although Quebec remains the leader in deals, constituting 55% of Canadian deals, it now holds the second position nationally, representing 41% of the total invested amounts.
  • A standout feature of private equity in 2023 is the rise of clean technologies, marked by 16 deals totaling $201M. This represents a remarkable 100% surge in deals compared to 2022 and an astonishing 657% increase in invested amounts.